Have we learned the lesson yet?

There are many articles that note with the economic downturn that household debt has been greatly reduced. And the hope is that we have learned our lesson well and cut the debt cord.

But have we? It looks like that hope is a bit premature...

http://moneyland.time.com/2012/01/12/in-november-we-racked-up-5-6-billion-more-credit-card-debt/

So on Black Friday retailers were thrilled to report consumers spent an unexpected $52 billion (with a "b"). Unfortunately, consumer borrowing surged $20.4 billion (also with a "b") in November - the highest month-over-month increase in a decade! Of the borrowing, $5.6 billion ("b" again) was on credit cards.

Maybe rather than cut the cord, we need to cut the cards!

I listened to an NPR interview discussing why we use debt for purchases. The person being interviewed felt two reasons at least included immediacy (not having to wait) and relativity (adding $100 to a $3,000 balance seems relatively small and therefore causes little concern).

The interview also discussed a new trend in credit card marketing called virtue cards - where instead of cash back or other incentives, a portion of the spending was donated to charity. This made people feel a little less selfish about their consumerism?

The Time article credited some of the credit card spending to a wave of 0% offers promoted by credit card issuers.

I guess the point is (and it sort of covers weeks 3 - 6 in FPU):

1) Wake up
2) Make a plan (budget)
3) Quit using debt (cut up the cards)
4) Be aware of and defend against the impact of marketing on your buying decisions

Seek Wisdom in Troubled Times

These days, it is easy to get lazy in our thinking. No longer do we watch the news for news, we now watch for analysis. In fact, many entire shows are devoted to analysis of and commentary on the "news." Yes, the analysts abound and we hardly know how to think for ourselves.

If you are careful in your choice of analysts, you will arrive at good conclusions most of the time. But if not...

Now I firmly believe in evaluating writers, analysts, bloggers, etc., and finding a choice few that you really feel represent your approach, viewpoint, and ethic, but don't leave the thinking to them. Don't allow your inquiry to stop there. Don't get lazy. Do your own research. Consider your "advisors." Reach your own conclusions.

Keep learning. Keep reading. Keep thinking! And don't forget to inquire of the Lord as your Chief Advisor. The Bible says He gives wisdom freely to those who ask.

"If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you." - James 1:5 (NIV)

It takes wisdom to navigate this world with it's abundance of information so readily available.

As you hear about all the turmoil, remember, the news media is owned almost exclusively by corporate giants interested primarily in profits, not news. They report what sells in the way it sells ("If it bleeds, it leads."). Don't let them tell you what you "need" to know.

One of the results of living in God's Kingdom and seeking His wisdom should be peace (Romans 14:17). And you'll not likely find that in the media, in the analysts' reports, or in the commentary. But if you'll learn, read, think, and seek God's Kingdom first, you might catch a different view of world and financial events. You might find wisdom.

"For wisdom is more profitable than silver, and her wages are better than gold." - Proverbs 3:14

The article link below is not from a Christian viewpoint necessarily, but is one I found interesting and wanted to pass along for your review as you read, learn, and think for yourself - and perhaps wonder whether civilization as we know it is about to come to an end. Note the date it was originally published. The world didn't end then either.

Economic Chronicles: The Money Mirage

Click here http://www.aier.org/research/commentaries/158-the-money-mirage-an-introduction for original article.